F1: Ferrari (NYSE:RACE) Votes in Favor of Aero Changes

F1: Ferrari (NYSE:RACE) Votes in Favor of Aero Changes

F1: Ferrari (NYSE:RACE) Votes in Favor of Aero Changes


F1’s governing body the FIA has approved rule changes designed to increase overtaking and promote closer racing in as part of an ongoing initiative to win back fans.

From next year, F1 aerodynamics will be simplified. The racing cars will have a front wing with a larger span, simplified brake ducts, and a wider rear wing.

FIA said the changes approved at its World Motor Sport Council meeting Monday followed “an intense period of research” which led to a majority evote from the F1 teams including Ferrari (NYSE:RACE).

The front wings will also have a low out-wash potential, meaning less air from the front wing will be generated around the outside of the tires, which in turn will less hinder the down-force and grip of the car behind trying to overtake.

The proposals also have the backing of F1 owner Liberty Media (NASDAQ:LMCA) and have been ratified for Y 2019, the FIA said in an e-Mailed statement Tuesday.

The approved changes are separate to the ongoing work being undertaken in regard to defining F1 regulations for Y 2021 and beyond, when the current set of rules, known as the Concorde Agreement, expire.

The biggest change in Y 2021 will center on engines, budget caps and wealth distribution, in order to create a more level playing field.

In the future, F1 wants cheaper, louder, more powerful engines, but also wants them more reliable to reduce the amount of grid penalties. The power units, must also be accessible to any new teams planning to enter the series.

But F1 has been fast-tracking some changes that did not need to wait until 2021.

Recently, measures were approved for an increase in race fuel allowance in order to allow drivers to race at full power for longer, and the separation of driver weight from car weight to end the disadvantage of heavier drivers.

Under Liberty’s ownership, the F1 teams are working more closely than before.

Ross Brawn, F1’s Managing Director of Motorsports, says the changes for Y 2019 reflect “a good spirit, a good way of working together for a better and more spectacular Formula One” for racing fans.

Previous seasons, with the exception of a few races in Y’s 2016 and 2017, saw very little overtaking and this gave a huge advantage to the driver taking the Pole. Many races were won from start to finish by dominant MercedesAMG, although the balance started to shift somewhat last year with the resurgence of Ferrari.

There have been 3 different race winners in 4 exciting races so far this season.

The 1st 2 for Ferrari driver Sebastian Vettel and 1 each for Daniel Ricciardo of Red Bull Racing, and defending champion Lewis Hamilton for MercedesAMG.

Of note Mr. Vettel has been impacted by the wild driving technique of Red Bull’s Max Verstappen in the last 2 races, allowing Mr. Hamilton to regain the overall championship points lead.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 122.48 1 May 2018 -0.20 122.66 122.755 121.18 224,500
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (0.02) Neutral (-0.11) Neutral (0.17) Neutral (-0.00)

Stay tuned, Barcelona is up next.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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